Gold and Silver Both Find Short-Covering

GOLD

Gold broke below the key $1,900 support level this morning as the U.S. dollar reached a two-month high. Additionally, in congressional testimony Fed Chairman Powell did not provide any indication of more stimulus on the way, this caused a loss of Gold price support. This information combined with England’s talk about a second COVID lockdown wasn’t helpful for the Gold price. Gold reached a low of $1,861 per ounce before seeing sizeable demand as fresh buying and short covering helped support the price. At 11 am PT today, Gold is trading at $1,866 per ounce, down $38 on active volume.

SILVER

Silver reached a low of $22.88 before finding short-covering and bargain buyers. The $24 per ounce level wasn’t able to hold this morning as Gold sold off; the big question is where will Silver find price support. If Gold holds above $1,860 per ounce, $23 could be the right support level for Silver as it would represent a Gold/Silver ratio around 80-to-1. At 11 am PT today, Silver is down $1.45 per ounce, trading at $23 on excellent volume.